According to the Zhitong Finance APP, U.S. President Donald Trump stated that if the allegations made by a U.S. government official regarding Federal Reserve Chairman Jerome Powell misleading Congress are true, Powell should &#34;immediately resign.&#34; He intensified his personal attacks on the Federal Reserve leader, arguing that his long-standing unchanged interest rate policy is unsuitable for the current U.S. economy.
It is reported that during a cabinet meeting on Tuesday, Trump described Powell as &#34;terrible&#34; and told reporters that if the allegations of him deceiving Congress regarding the renovation of the Federal Reserve headquarters are confirmed, that would be the core reason for his swift departure. &#34;Then he should resign immediately,&#34; Trump said. &#34;We should find someone who will lower interest rates to replace him.&#34;
Subsequently, in a post on social media, Trump again pressured Powell to cut interest rates immediately, accusing the Federal Reserve chairman of &#34;complaining like a child about nonexistent inflation for months and refusing to do the right thing.&#34; &#34;Lower the rates, Powell—it's time!&#34; Trump wrote.
After Trump's remarks at the cabinet meeting, a Federal Reserve spokesperson declined to comment.
Trump has repeatedly criticized Powell's decision to keep interest rates unchanged this year, stating last month that he would choose a successor who is willing to lower rates. Powell's term as chairman will expire in May 2026.
Trump's critical remarks have also been echoed by several U.S. government officials, including Federal Housing Finance Agency Director Bill Pulte. Pulte called for Congress to investigate Powell, accusing him of providing &#34;deceptive&#34; testimony to lawmakers regarding the renovation work at the Federal Reserve headquarters, although no substantial evidence was provided.
Pulte also called for Powell's resignation, which Trump amplified on social media. Pulte is the grandson of William J. Pulte, founder of homebuilder PulteGroup, and has been a strong critic of the Federal Reserve, believing that policymakers' failure to lower rates is harming housing affordability in the U.S. market.
Federal Reserve officials have recently pointed out that the uncertainty in inflation prospects due to tariffs and other economic policies from the Trump administration is the reason for maintaining the current policy, stating that tariffs this summer could lead to significant inflation increases.
Some media reports indicate that the costs of the renovation project at the Federal Reserve headquarters have been ballooning and include several luxury facilities. The Federal Reserve's budget documents for 2023 attribute the rising renovation costs to &#34;significant increases in raw material prices, far exceeding normal increases, rising labor costs, and adjustments to construction schedules.&#34;
Although Powell acknowledged the cost overruns before lawmakers, he denied some media reports regarding the project, calling them &#34;completely misleading.&#34;
&#34;There is no VIP restaurant, no new marble,&#34; Powell stated in his congressional testimony on June 25. &#34;There are not even new elevators—only those old elevators that have been used for a long time—no new water features, no beehives, and no rooftop gardens.&#34;
In a letter to Senate Banking Committee Chairman Tim Scott on July 3, Powell added that Federal Reserve officials &#34;take their responsibility as good stewards of public resources seriously and welcome further communication on this matter.&#34;
Powell also stated that the Federal Reserve intends to hold a briefing with Scott's staff group &#34;to further discuss the renovation project in detail.&#34;
Powell's Future
Although it has long been a tradition for U.S. government officials to avoid commenting on interest rate decisions—this tradition has been repeatedly broken during Trump's term—Pruitt is not the only government official to publicly criticize Powell recently.
Trade advisor Peter Navarro suggested in an interview with Fox Business on Tuesday that if Powell is still unwilling to push for a rate cut at the next Federal Open Market Committee (FOMC) meeting, other Federal Reserve governors should intervene.
&#34;The problem is we have a partisan Federal Reserve led by Powell, and my call is that at the meeting on July 29 and 30, if Powell cannot accept 'Trump economics,' the Federal Reserve Board should rein him in,&#34; Navarro stated. &#34;I don't understand why there are clearly some smart people on the board allowing Powell to lead them by the nose.&#34;
Navarro has been consistently critical of Powell in the interview, stating, &#34;If he continues this tightening monetary policy path at the Federal Reserve meeting on July 29, 'it will be too late,' and Powell will go down as the worst Federal Reserve chairman in history.&#34;
Trump has often publicly discussed the possibility of removing Powell from his position as Federal Reserve chairman, even sending out contradictory signals. He once wrote, &#34;The time to fire Powell couldn't come soon enough,&#34; only to later state, &#34;I have no intention of firing him at this time.&#34;
In June of this year, Trump indicated that he had three to four candidates in mind to succeed Powell as Federal Reserve chairman after his term ends, stating he would choose a successor who is willing to accept a rate cut policy—an action that would directly challenge the independence of the Federal Reserve.
Trump has belittled Powell's monetary policy decision-making ability, mocking him as a &#34;stubborn mule and a fool&#34; for not supporting a push for rate cuts.
The Federal Reserve previously maintained interest rates in the range of 4.25%-4.5% in June, keeping the benchmark rate unchanged since last December. Powell told lawmakers last month that if it weren't for the uncertainty in future price outlooks due to tariffs, the Federal Reserve should have already begun cutting rates based on the declining inflation situation. He also warned that there is currently no need to rush to adjust the interest rate policy. Additionally, Powell stated that inflation readings are expected to rise this summer. However, he also admitted in recent speeches that there is a high degree of uncertainty regarding the magnitude, timing, and persistence of the rise in inflation.
Is Waller the Best Candidate to Succeed Powell?
Among all potential candidates to succeed Powell as Federal Reserve chairman, current Federal Reserve Governor Christopher Waller is currently recognized by Wall Street as the &#34;safest&#34; choice.
As a monetary policy maker who is neither hawkish nor dovish, but strictly data-driven, Waller has gained widespread recognition on Wall Street and in U.S. political circles for his exceptional thought leadership and keen economic policy judgment.
Wall Street strategists generally point out that Waller can gain market trust and meets Trump's demand to lower the 10-year U.S. Treasury yield, making his nomination likely to be positively priced in by the bond market, thus avoiding the risk of yield spikes that could result from appointing an extreme candidate
It is worth noting that Waller previously expressed support for starting interest rate cuts in July, and this dovish statement is seen as his endorsement of the interest rate cut rhetoric led by Trump.
The key reason Waller has the opportunity to become an &#34;acceptable Federal Reserve Chair nominee&#34; nominated by Trump is that he was originally appointed as a Federal Reserve Governor by Trump in 2020. He has long upheld the independence of the Federal Reserve's monetary policy while not frequently challenging Trump's economic and monetary policy positions. Wall Street believes he can maintain the independence of the Federal Reserve while not rejecting the interest rate cut policies requested by Trump, which is exactly what Trump desires

U.S. President Trump pressured Federal Reserve Chairman Powell, stating that Powell should resign immediately if he misleads Congress, and criticized his policy of maintaining interest rates as unsuitable for the current economy. Trump stated at a cabinet meeting that Powell has performed poorly, called for interest rate cuts, and accused him of having unrealistic complaints about inflation. Trump's remarks were supported by other officials, with Federal Housing Finance Agency Director Mark Calabria also calling for Congress to investigate Powell

- President Donald Trump has called for Federal Reserve Chairman Jerome Powell to resign if allegations of misleading Congress are proven true, criticizing Powell's unchanged interest rate policy as unsuitable for the current U.S. economy.  
- Trump has intensified his attacks, labeling Powell as "terrible" and urging for a successor who would lower interest rates, while also suggesting that Powell's actions could warrant immediate resignation.  
- The Federal Reserve has refrained from commenting, as Trump and other officials continue to challenge Powell's decisions, with potential successors like Christopher Waller gaining attention for their balanced approach to monetary policy.

Zhitong

The Federal Reserve Chairman is under heavy attack again! Trump continues to pressure for interest rate cuts and angrily criticizes: If he deceives Congress, Powell should resign immediately